Small Business Taxation

Business Taxes

GST/PST Rates, Refundable Or Non-refundable

GST

The goods and services tax is a 6 per cent tax on the supply of most goods and services in Canada
Almost everyone has to pay GST on taxable goods and services
You have to register for GST if you are providing taxable goods or services in Canada in the course of your commercial activities and have taxable revenue above a prescribed minimum
You can claim a credit to recover the GST on purchases and expenses you use in your commercial activities
Sales of certain goods and services are not subject to GST and are designated as exempt supplies
All details on Goods and Services Tax can be found in the publication “General Information for GST/HST Registrants”, published by Canada Revenue Agency.
Source: Canada Revenue Agency, July 2006 (7/2006)

PST (Ontario)

5 per cent on accommodation in hotels, motels, etc. for a period of less than one month
8 per cent on manufactured goods and most services
10 per cent on admission to places of amusement; alcoholic beverages through licensed establishments
12 per cent on alcoholic beverages sold through retail stores
A “Vendor Permit” is required for the collection of PST on taxable goods and taxable services sold on a regular basis
Details on the Retail Sales Tax in Ontario can be found in “Retail Sales Tax Guides”, published by the Ontario Ministry of Finance.
Source: Ministry of Finance, September 2003 (6/2005)